As the end of 2024 approaches, the cryptocurrency market is experiencing a significant decline in trading volume, indicating a change in market dynamics. According to Santiment, total trading volume over the past week has dropped 64% compared to the previous week, marking an all-time high for Bitcoin.
This decline, particularly among altcoins, is not entirely unexpected. The holiday season and traders organizing their finances for the end of the year traditionally lead to a decrease in market activity during this period.
Despite the lull, a sudden rise may occur in the market if whales continue to accumulate assets without the usual participation of retail traders.
Moreover, the end of December is usually marked by a decrease in trading activity in the cryptocurrency space, especially in sectors such as meme coins, AI/Big Data projects, as well as level 1 and level 2 assets.
The Santiment data chart shows that trading activity has fallen to its lowest level in seven weeks, indicating a cooling of the market after its early surge in mid-November.
At that moment, trading volume surged due to external factors such as political events and investor sentiment. However, that period has since passed, and the market is now returning to a more stable state. Additionally, meme coins (green) and level 2 assets (blue) have witnessed the largest decline in interest, while AI and big data projects (purple) have followed a similar downward trajectory.$BTC $TRX $ATA #BtcNewHolder
